Amazon introduces 3-D Fire Phone for $199 or $299

A big-screen view of the 3D technology Amazon has built into its new Fire smartphone. This video explains how the technology works and allows viewers to see it in action.

As expected, Amazon introduced its smartphone, called the Fire Phone, at an event in Seattle.

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The phone has a 4.7-inch screen, aluminum buttons and a high-definition LCD display, among other features.

As previously reported, the phone has some 3-D functionality, which Amazon CEO Jeff Bezos called "dynamic perspective." This allows, among other things, the user to scroll through applications (like a set of phone numbers) just by tilting the phone, rather than touching the screen.

Bezos said this is accomplished by a series of front-facing cameras that track the user's perspective, in order to render the phone's interface in 3-D.

The phones are priced at $199 for 32 GB, or $299 for 64 GB, with a two-year contract with AT&T, or $650 without a contract. It's available for pre-order Wednesday, but starts shipping July 25.

The Fire will also feature unlimited photo storage, plus access to Amazon's streaming music service for Prime members, Bezos said.

Bezos also introduced a service called "Firefly," wherein the phone can instantly identify products using the phone's camera, and add them to your Amazon account.

Amazon fuels Fire phone

CNBC's Josh Lipton talks to David Limp, senior vice president of Amazon's device division, about the newly announced Fire phone and the company's partnership with AT&T.

Before the announcement, some argued that taking on Samsung and Apple in the smartphone market could turn out to be a big mistake.

"They are entering a very established market and they are trying to be a new player, and even with a name like Amazon, it's not going to happen," said Kevin Paul Scott, co-founder of the ADDO Institute, a branding consultancy firm.

"It's really a branding issue. People do not associate Amazon with phones, so regardless of how good their phone is, it won't catch on."